October 2013 Market Report

October 2013 Market Report
Report overview This report includes MLS data for the past 36 months in Maricopa County only as provided by the FlexMLS system.  Please note that searches fluctuate daily when running these reports; these figures were obtained on 10/2/2013.

A reminder that you need to meet with a real estate professional to see how statistics impact the area where you are considering selling or buying – blended statistics will not be as accurate as a more detailed report that your real estate professional can provide to help you with your decision making.

(click any graph for larger image)

Closed Sales Report Analysis:

Sellers:

The month of September showed a significant decrease of 10% in the number of closed sales. The statistics show that we had 5,608 residential homes sell in September in Maricopa County compared to 6,260 in the month of August. This is the fourth month in a row that we have seen this number decrease.  Although this follows the trend for this same month in the past 2 years, sellers should pay attention as it means fewer of them are having success selling their homes.

Buyers:

For buyers, this means that though the inventory is increasing, it is still limited.  Fewer buyers found success in closing on a home when compared to the prior few months.  As prices and interest rates continue to rise, buyers need to take action now to make sure they don’t get priced out of buying their home.

Pending Sales Analysis:
 

Sellers:

The month of September saw a 16% decrease in the number of homes that moved to pending status – a total of 4,259 homes. Although September usually sees a drop in this number, it is very important for sellers to monitor this statistic. It means significantly fewer buyers and sellers were able to come to agreement on the terms of a contract on a home.

Buyers:

Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller.  Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.  With the recent increase in interest rates, it will be important to monitor its impact on future sales.

 

Average Sales Price Analysis:
 

Sellers:

Last month saw the average sales price decrease slightly by $200 from $244,408 to $244,208. This does NOT follow the trend of the month of September in the prior two years when we have normally seen an increase in the average sales price.  Although this is the 5th highest average in the 36-month reporting period, we are definitely seeing a level off of prices in the market. Sellers need to remain diligent about pricing homes according to the current market and to understand how this increase impacts individual homes.  Sellers are encouraged to spend time with their real estate professional to determine what is happening in their local market.

Buyers:

This statistic is an indicator that buyers still continue to pay more for homes than they have in the past 36 months. Educated and savvy buyers understand that a competitive market gives them fewer options for home choices, negotiating on price AND looking for concessions from a seller.  Although this may vary from area to area AND from price range to price range, buyers need to make sure they are fully informed regarding the individual market in which they have an interest.  This will give them the best chance of being competitive in the search for a home.

 

Distressed Sales Analysis:
 

A bank owned/foreclosure home is one that the seller no longer owns – it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller is negotiating with the bank to “forgive” a portion of the debt in order to avoid foreclosure.

The market saw a slight adjustment favoring what we call traditional or non-distressed sales.  Bank-owned sales decreased slightly from 8.4% to 7.3% of closed sales, and short sales decreased from 10.5% to 8.9%.  The result was an increase in the number of traditional sales from 81.1% to 83.8%.  Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.

STOP!

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Thank you
Joseph D'Ambrosio
Joseph D'Ambrosio Cell: 623-204-2138
Real Estate Consultant / REALTOR 
West USA Realty
Email: joseph_dambrosio@westusa.com
Email: ArizonaHomeBuying@gmail.com